AMP deputy chief economist Diana Mousina says record spending could increase inflation and slow productivity

A top economist has warned that record levels of government spending could boost inflation and slow productivity, just as updated federal budget figures show payments have risen sharply. AMP deputy chief economist Diana Mousina said state and federal spending reached a record share of the economy at about 28 percent in the June quarter.

Wall Street gains after release of July inflation report

Wall Street's major indexes rose slightly in choppy trading after data showed inflation easing as expected, underpinning bets that the U.S. Federal Reserve is on track to begin its monetary easing cycle next month. Data from the U.S. Labor Department showed that consumer prices in the U.S. rose by 0.2 percent in July, as expected. … Read more